The ABC's and D's of Medicare

Medicare Part A - This is your hospital insurance coverage that can be used for inpatient hospital stays and services. The key that you need to remember with Medicare Part A is that it has a fee for service deductible. Unlike the insurance that you receive through your employer, you'll only pay when you actually visit the hospital. Your deductible will be due each time you need hospital care. If you've worked and contributed to Social Security for at least 10 years, you'll be eligible for Part A automatically when you turn 65. You may also be eligible due to disability.

Medicare Part B - This is medical insurance that covers parts of your doctor's visits, preventative screenings and other medically necessary procedures. You will be eligible to enroll at the age of 65, Medicare Part B comes with a low cost monthly premium. If you select doctors who "accept assignment," you will not have any additional costs for your medical care. If you opt for other doctors who accept Medicare, you will have to pay the difference between what Medicare offers and the doctor bills.

Medicare Part C - This is also known as Medicare Advantage and is supplemental insurance that offers the same benefits as Part A and Part B but with additional coverage. It's a good option if you want to use a doctor that doesn't "accept assignment" or want coverage for additional preventative care. Unlike Parts A and B, Medicare Advantage requires a private insurance company so you need to shop around to find the best option for you.

Medicare Part D - Prescription coverage is the newest addition to Medicare and was enacted into law in 2006. Like Part C, prescription coverage is only available through a private insurance company. Each has its own premium costs, rules and regulations, so be sure to read the "fine print."

Now that you know the ABCs of Medicare, you'll be able to find the right combination of coverage to meet your needs.

If you've recently become eligible for Medicare, you may be overwhelmed by the sheer number of choices out there. There are four basic parts of Medicare coverage that are available for your healthcare needs. Understanding each can help you figure out which combination of plans is right for you.

If you've worked at least 10 years and have contributed to Social Security, you're eligible for Medicare and can receive health insurance benefits through Medicare plans. In most cases, you won't be eligible for Medicare until you reach the age of 65, however there are some exceptions.

At the age of 65 you will be automatically enrolled in Medicare Part A and you will be eligible for Part B, in which you will need to enroll. If you are receiving your Social Security (SSA) benefit, then the Part B premium will be automatically deducted from your SSA check. If you have elected not to receive your SSA benefit, you will need to pay your Part B premium on a monthly basis. If you are still working and have health care and credible drug coverage through your employer, then you can delay your enrollment in Part B until the time at which you retire. If you delay your Social Security benefits, you can still obtain Medicare when you reach 65 regardless of your employment status.

Part A is hospital insurance that helps cover inpatient care in hospitals. You are enrolled in automatically. You pay a deductible each time you need hospital care. Your Part A hospital benefit also offers coverage for skilled nursing facilities, hospice and home health care. Under Medicare Part A, you pay a $1100 deductible for days 1-60 in the hospital and then a $275 per day co-pay for days 61-90.

Part B coverage is what you'll use when you go in for doctor's visits, have preventative health screenings and receive medically necessary care. This form of Medicare only covers outpatient care. X-rays, lab fees, diagnostic tests and medicine administered during a doctor's office visit are all part of this plan. Part B has a low monthly deductible and coinsurance.

Neither Part A nor Part B will cover all of your health insurance costs, so Medicare Advantage, Part C, may be necessary. When enrolled in a Medicare Advantage (MA) plan, a beneficiary is still required to pay his or her Part B premium. Enrollment in a Medicare Advantage plan means you are not using our Medicare card. So you will still be enrolled in Medicare, but you'll also have coverage with a private health insurance company. The private company has been approved by Medicare to offer low-cost health insurance coverage. In addition to lowering your monthly premium costs and deductibles, Medicare Advantage can also open you up to receiving other types of health insurance services like dental, vision, alternative and nutrition services. Medicare Advantage offers you flexibility in your health care choices and the maximum in options.

Medicare Part D is prescription coverage and is available in you qualify for Part A or Part B. You can get for the Part D prescription benefit through private insurers that have been approved by Medicare, such as; Medicare Advantage plans that offer the Part D benefit or a Stand-alone Prescription Drug plan. Different insurance companies have different rules for what types and amounts of prescription drugs they offer, although Medicare does specifically exclude certain categories of drugs.

With this Medicare plan information, you'll be better equipped to understand your Medicare coverage and find the right private insurance provider for Part C and Part D.